PJM 2026/2027 capacity results: bridge the auction price to the contract

The published result is a wholesale capacity price

PJM's July 22, 2025 auction announcement reported a 2026/2027 Base Residual Auction clearing price of $329.17 per MW-day of unforced capacity, across the PJM footprint. That is a specific auction result, not an electric energy rate, a retail quote or an amount charged to every business.

The distinction matters because capacity is not measured in kWh. A business's monthly peak kW also cannot be substituted automatically for the allocation determinant on its supplier invoice. The contract, account data, applicable market factors and settlement method determine the bridge. This guide does not publish a state-by-state percentage increase or promise that every account is affected identically.

Identify where the customer's exposure sits

Ask whether capacity is included in the contracted price, separately passed through, subject to a specified adjustment or treated through another defined mechanism. A fixed energy price does not answer that question. A contract described as all-inclusive still needs its exclusions and change provisions read alongside the price schedule.

Obtain the supplier's allocation determinant, units and effective period. Ask what converts an account's metering or peak-load information into the obligation used in the bill. Keep installed-capacity and unforced-capacity terminology distinct rather than assigning a regional label to every peak tag. PJM's capacity market page provides the primary market documentation.

Worked example: illustrate the units without claiming an invoice

Hypothetical allocation: assume a contract explicitly bills a 0.5 MW UCAP obligation at $329.17/MW-day for a 30-day period, with no other factors in this teaching model. The arithmetic is 0.5 × $329.17 × 30 = $4,937.55.

For a 31-day period under the same assumptions, it is $5,102.135, or $5,102.14 rounded at the end. The model deliberately assumes the relevant obligation is already expressed in UCAP MW. It does not establish that a customer's measured 500 kW peak equals that obligation. Actual capacity accounting can involve conversions, factors, true-ups and contract-specific allocation. Obtain those records before using the example as an invoice check.

Evaluate actions without promising tag reductions

An operating strategy aimed at a monthly billing peak may not address the interval or methodology used for a separate capacity allocation. A demand-response commitment can also create performance and availability duties. Ask which determinant is targeted, which data supports the forecast, when a change would take effect and what obligations remain if the event does not occur as expected.

A useful decision memo compares the current contract, an executable renewal offer and an operational option separately. It shows capacity treatment explicitly and avoids treating a single auction number as a retail rate forecast. Use the offer comparison guide for the risk-and-inclusion table; the simple rate calculator does not price a capacity pass-through.

First-bill verification

Record the service period, allocation determinant, price source, unit conversion, days and rounding. Reconcile any supplier adjustment to the named clause. Keep the explanation and underlying data with the agreement, particularly after a meter change, account transfer or corrected usage record.

Sources and limits

PJM's 2026/2027 announcement supports the historical result. PJM capacity market documentation supplies the governing primary references. The allocation example is hypothetical and does not assert a customer bill, supplier relationship, future auction outcome or achieved saving.